the 1st quarter of fy2018 (ended june 30, 2018) financial ... › en › ir › ... · allocated to...

© Hitachi Transport System, Ltd. 2018. All Rights Reserved.

0

The 1st Quarter of FY2018

(Ended June 30, 2018)

Financial Results Briefing


1 Contents of Today's Briefing

II. Topics

Acquisition of License of Bonded Logistics Center (PLB),

Opening Innovation Center in the U.K.,

Introducing Double-Trailer Truck

I. 1Q of FY2018 Financial Results

Overview, Breakdown by Group, Full year (Plan)/1Q (Results) of FY2018

Detail of Variations for Revenues, Full year (Plan)/1Q (Results) of FY2018

Detail of Variations for Operating income, Overseas results by region,

Trend of new orders/new startups, Collaborative Innovation Project,

Results by Business Category


2

(Unit: 100 million yen, rounded off to the nearest integer. < > parentheses are profit ratios (%))

1Q of FY2018 Results

* Operating income in this document represents “Adjusted operating income.” No change in the full-year plan

% Change

Revenues 1,689 1,748 104% 59 7,100 101%

Operating income* <3.9> 65.6 <4.2> 74.2 113% 8.6 <4.4> 310.0 104%

EBIT(Earnings before interest and taxes)

<4.7> 79.3 <4.6> 80.7 102% 1.4 <4.9> 347.0 105%

親会社株主に帰属する

四半期利益 <2.8> 47.8 <2.9> 50.5 106% 2.7 <3.0> 215.0 103%

Plan

(As of April 27)Y o Y

FY2018

Full-year

Y o YResultsResults

FY2017

1Q 1Q

Net income attributable to stockholders of the parent

company


3 1Q of FY2018 Results (Breakdown by Group)

(Unit: 100 million yen, rounded off to nearest integer. < >: composition ratio (%). ( ): year-on-year change)

✔

Cost allocated to domestic companies (forwarding and others) increased 80 million yen from a year earlier due to a partial change in the allocation method of company-wide expenses. (Adjusted operating income would have been 80 million yen under the previous method.)

Y o Y 1Q Y o Y

<58> 880 103% 48.0 109%

Overseas <30> 445 102% 15.8 129%Allocated to domestic companies (forwarding and others) <9> 133 112% -0.0 (-0.9)

Total <38> 577 104% 15.7 120%

<3> 50 99% 2.5 66%

<100> 1,507 104% 66.2 109%

<66> 179 104% 7.7 129%

Overseas <34> 93 102% 2.9 209%Allocated to domestic companies (forwarding and others) <0> 0 - 0.0 -

Total <34> 93 101% 2.9 209%

<100> 271 103% 10.6 144%

- -30 (-1) -2.6 (+0.0)

<60> 1,051 103% 53.6 112%

Overseas <30> 523 102% 18.2 138%Allocated to domestic companies (forwarding and others) <7> 125 114% -0.0 (-0.9)

Total <37> 648 104% 18.1 130%

<3> 48 98% 2.5 66%

<100> 1,748 104% 74.2 113%

Revenues Operating income

1Q

Organic

Domestic logistics

Global

logistics

Others (logistics-related businesses, etc.)

Total

Total

Domestic logistics

Global

logistics

Others (logistics-related businesses, etc.)

Vantec

Group

Domestic logistics

Global

logistics

Total

Consolidated Adjustment/

Amortization of customer-related intangible assets of

VANTEC Group, etc.

✔ Including

cost increase (-0.8)


4

Effect of exchange fluctuation +144

-25

FY2017 (Result) FY2018 (Plan)

7,004

7,100 USD： ¥110

EUR： ¥130

CNY： ¥16.5 New orders

Environmental/ volume changes

-112

(100 million yen)

Revenues (Plan)

+89

FY2018 Plan (Revenues)

Contribution from collaborative innovation

+233

FY2018 Sales from collaborative innovation: 200 ・Expansion of operations

・Customers’ volume changes ・Implement a portfolio strategy suitable for business domain, etc.

＋96

From Financial Results Briefing on April 27, 2018


5

New orders

1,748

+31

+59

1,689

・Domestic: ＋16

・Global: ＋15 (Of which, project cargo)

・Domestic: ＋8

・Global: ＋9

+10

・USD:￥111 → ¥109

・EUR:￥122 → ¥130

・CNY:￥16.2 → ¥17.1

1Q of FY2017→1Q of FY2018

Environmental/volume changes/ Continuous improvement, etc.

-15

(100 million yen)

・Domestic/other: -23

・Forwarding/overseas: -4

・Expansion of operations: +12

+64

1Q of FY2018 Results (Detail of Variations for Revenues)

1Q of FY2018

Revenues (Result)

1Q of FY2018 (Result) 1Q of FY2017 (Result)

Effect of exchange fluctuation

Collaborative innovation

+33

1Q of FY2018 Sales from collaborative innovation: 44

Domestic -21 9 -12 16 31 35

Global 10 -4 3 -1 15 1 25

Other -2 -2 1 -1

Total 10 -27 12 -15 31 33 59

TotalOther volume

changes, etc.

Expansion of

operationsSubtotal

Environmental/volume changes/

Continuous improvement, etc. New

orders


Collaborative

Innovation

projects


6

298

Environmental/ volume changes

+12.0 -1.1


FY2018 Plan (Operating Income)

✔ New business model

✔ Enhance and expand

R&D

310

(100 million yen)

Operating income (Plan)

FY2017 (Result) FY2018 (Plan)

-21.0 New orders

-11.1

+24.0

+9.2 New strategic investment

・Expansion of operations/Customers’ volume changes

・Recovery from backlash of past strategic investment, etc.

・Implement a portfolio strategy suitable for business domain, etc.

・Incorporating business risks, etc.

New structural reforms/ Productivity improvement

+12

FY2018

Profit from collaborative

innovation:

20

Contribution from collaborative innovation

From Financial Results Briefing on April 27, 2018


7

65.6

Environmental/volume changes/ Continuous improvement, etc.

+3.7 +0.5


74.2 (100 million yen)

-2.3

New structural reforms/

Productivity improvement

+3.1

+3.6

1Q of FY2018 Results (Detail of Variations for Operating Income)

1Q of FY2018 Operating income

(Result)

+8.6

New orders

Collaborative innovation

1Q of FY2018 (Result) 1Q of FY2017 (Result)

・New structural reforms: +0.6

・Productivity improvement: +2.5

・Domestic: +2.1

・Global: +1.6 (Of which, project cargo)

・Domestic: +1.1

・Global: +1.0

1Q of FY2018

Profit from

collaborative

innovation: 4.7

・Expansion of operations: +1.6

・Fuel cost increase: -0.5

・Work costs increase

(temporary/part-time employees): -3.8

・ Withdrawal, etc.: -1.4


8 1Q of FY2018 Results (Overseas Results by Region)

*1. Turkey is treated as Europe.

*2. Amortization of Customer-related intangible assets of VANTEC Group is included in "Elimination of intra-company transactions, etc.".

(Unit: 100 million yen, rounded off to the nearest integer)

RevenuesOperating

incomeRevenues Y o Y

Operating

incomeY o Y

106 1.7 112 106% 3.2 188%

169 7.7 181 107% 9.7 126%

99 3.8 113 114% 4.9 129%

144 1.8 123 85% 2.4 132%

9 0.4 10 107% 0.6 152%

-14 -2.3 -14 - -2.6 -

513 13.2 523 102% 18.2 138%

FY2018

1Q 1Q

Overseas

North America

Europe*1

Asia (excluding China)

China

Oceania and Others

Elimination of intra-company

transactions, etc.*2

Total

FY2017


9

1Q of FY2018: Trend of New Orders/New Startups

(Reference) The Number of New Orders of Domestic Sales Division ＜Including new projects (both new and old definition), one-time project (Heavy Machinery and Plant Logistics, etc.) and small scale projects＞

525 549

1Q of FY2017

＊Steady increase of orders in regions due to enhanced region-based sales efforts

Unit: projects

1Q of FY2018

1Q of FY2018 Results (Trend of New Orders/New Startups)

・Orders under ¥10 million: 523 (recurring: 80/one-time: 443) → 546 (recurring: 52/one-time: 494)

・Orders over ¥10 million: 2 (recurring: 1/one-time: 1) → 3 (recurring: 1/one-time: 2)

Unit: projects 1Q of FY2017 1Q of FY2018

FY2017

1Q 1Q Y o Y

Domestic 2 3 1

Global 4 4 0

Total 6 7 1

Domestic 1 5 4

Global 1 2 1

Total 2 7 5

FY2018

New Startups

New Orders


10

RevenuesOperating

incomeRevenues

Operating

incomeRevenues

Operating

incomeRevenues

Operating

income

3PL/Transportation Cross-selling/optimization 9 0.8 101 9.7 40 4.2 - -

Others Heavy Machinery and Plant Logistics, etc. 0 0.0 1 0.2 0 0.0 - -

9 0.9 103 9.9 41 4.2 186 18.4


OthersHeavy Machinery and Plant Logistics/

Forw arding, etc.1 0.1 6 0.7 2 0.3 - -

1 0.1 7 0.8 2 0.3 11 1.2

Others Vehicles leasing/Travel business, etc. 0 0.0 2 0.1 1 0.2 - -

0 0.0 2 0.1 1 0.2 3 0.4


OthersHeavy Machinery and Plant Logistics/

Forw arding, etc.2 0.2 9 1.0 3 0.5 - -

(9.4%) (9.7%) (10.6%) (10.0%)

11 1.0 111 10.8 44 4.7 200 20

Item

FY2017 FY2018

1Q results Full-year results 1Q results Full-year plan

Collaborative Innovation Effect

( ) : Operating margin

Domestic

Subtotal

Global

Subtotal

OthersSubtotal

Promote collaborative innovation and collaboration to realize seamless comprehensive logistics service

Collaborative Innovation Project with SG Holdings (Progress Status of 1Q)

■ Progress rate of full-year plan: 22% 23%


11

■Major ongoing projects in FY2018 ■ Proposed projects

― Operations started ―

- April: Retail products

- May: Apparel manufacturer

- June: Beverage manufacturer

- July: Shoes manufacturer

― Operations to be started ―

- August: Food manufacturer

- August: Shoes manufacturer

- September: Food manufacturer

- November: Publishing company, etc.

- Apparel manufacturer

- Retail products

- Cosmetic manufacturer

- Publishing company

- Chemical manufacturer, etc.

Promote collaboration in cross-selling projects

Collaborative Innovation Project with SG Holdings (Progress Status of 1Q)

Approx. 200 (full-year contribution)

(Unit: 100 million yen)


12 (Ref.) 1Q of FY2018 Results (Breakdown by Business Category)

(Unit: 100 million yen)

Reference Results by Business Category (estimated)

*( ): Excluding amortization of customer-related intangible assets

* The allocation method for company-wide expenses was partly changed. Results and plans presented above reflects this alternation.

RevenuesOperating

incomeRevenues

Operating

incomeRevenues

Operating

income

852 40.1 4.7% (4.7%) 883 45.7 5.2% (5.2%) 3,637 180.6 5.0% (5.0%)

300 14.4 4.8% (5.1%) 327 14.8 4.5% (4.9%) 1,312 59.6 4.5% (4.9%)

1,153 54.5 4.7% (4.8%) 1,210 60.5 5.0% (5.1%) 4,949 240.2 4.9% (5.0%)

111 1.0 0.9% (1.9%) 124 0.3 0.3% (1.1%) 518 7.5 1.4% (2.3%)

156 1.6 1.0% (2.0%) 140 1.8 1.3% (2.1%) 491 8.3 1.7% (2.8%)

267 2.6 1.0% (1.9%) 264 2.1 0.8% (1.6%) 1,009 15.8 1.6% (2.5%)

163 3.1 1.9% (3.2%) 170 5.8 3.4% (4.7%) 707 26.0 3.7% (4.9%)

57 0.8 1.5% (1.9%) 56 2.1 3.8% (4.2%) 220 7.1 3.2% (3.7%)

220 4.0 1.8% (2.9%) 226 7.9 3.5% (4.6%) 927 33.0 3.6% (4.6%)

48 4.6 9.5% (9.5%) 48 3.7 7.7% (7.7%) 215 20.9 9.7% (9.7%)

1,689 65.6 3.9% 1,748 74.2 4.2% 7,100 310.0 4.4%

Operating marginOperating

margin

1Q of FY2018 Full-year Plan of FY2018 (as of April 27)

Operating margin

1Q of FY2017

Domestic

Overseas

3PL

Domestic

Overseas

Total

Domestic

Overseas

Automobile

Other services

Forwarding


13

Acquired license of bonded logistics center (PLB*) as the first Japanese company in East Java, Indonesia

Items PLB

Name East Java Logistics Center

Warehouse floor space/

PLB area

Approx. 75,000㎡ (total)/

Approx. 11,000㎡ (PLB area)

Target of PLB license Manufacturers (large company)

Acquisition date of

license May 2, 2018

*PLB：Pusat Logistik Berikat

■ Outline

Topics: Acquisition of License of Bonded Logistics Center (PLB)

■ Main features of PLB Conventional bonded

warehouse

One owner only

Not permitted

Import cargo

only

Multiple owners

Permitted

Cargo owner

per license

Non-resident

inventory

Storable

cargo

When first carried

into warehouse

When carried out

of PLB

Timing of

taxation

Simple work only

Simple work,

repair,

inspection, etc.

Permitted work

Import/export cargoes

and local cargo

for manufacturing


14 Topics: Promotion of New Smart Logistics Technologies

Opening Innovation Center in the U.K. [Scheduled to be established in April 2019]

Name Innovation Center

Location

Sunderland, the U.K.

(inside the VANTEC EUROPE’s

warehouse)

Floor

space Approx. 800㎡ (2F: Mezzanine* floor) ・Utilizing part of the existing warehouse

* Temporary shelves in a mezzanine level for effective use of the space inside the warehouse

■ Outline

・ Training center (forklift, etc.)

・ R&D and verification of new technologies

through industry-government-academia

collaboration

・ To promote global expansion of

new technologies

・ To improve safety and quality through

enhanced training (reduce loss costs)

■Objectives

■Functions of the center

Image of Living Warehouse (virtual forklift training center)

[Current status] (warehouse) [Renovating to Innovation Center]


15 Topics: Initiatives to Reduce Environmental Load

Introducing double-trailer truck [Scheduled to be introduced in February 2019]

全長21m ドーリー連結・分割方式ダブル連結トラック ⇒ 2セット導入

全長11m フルトラクタ（現行大型車と同容積）全長10mフル・セミトレーラドーリー11-meters-long full tractor

(Same capacity as the existing large-size vehicle) Dolly 10-meters-long full/semi-trailer

Double-trailer truck with a total length of 21 meters using a dolly ⇒ 2 sets to be introduced

・ Cost saving by increasing the maximum loading capacity

・ Reduction of driving management risk by reducing long-hour driving

・ Reduction of CO2 emission by reducing the number of vehicles in

operation

Feature ・ Separately operable as a full tractor and semi-trailer by detaching a dolly

・ Wing type double-trailer truck

Effect of

introduction

* This initiative is adopted as the “Project to promote CO2 emissions reduction in transport sector” (subsidized by the Ministry of the Environment in collaboration with the Ministry of Land, Infrastructure, Transport and Tourism)

the 1st quarter of fy2018 (ended june 30, 2018) financial ... › en › ir › ... · allocated to...

Documents